Baltic Horizon Fund consolidated unaudited results for Q3 2025
Management Board of Baltic Horizon Capital AS (previously Northern Horizon Capital AS) has approved the unaudited financial results of Baltic Horizon Fund (the Fund) for the nine months of 2025.
The Fund reports on its 9 months of operations in 2025 under the new composition of its management board as well as the new ownership of its management company which are effective from 30 October 2025. In connection with this change of ownership, the management company has changed its name to Baltic Horizon Capital AS.
The management estimates that approximately EUR 25 million in new equity is required to enable full repayment of the bonds and funding asset enhancement projects on the current portfolio. Over the course of November, the management will communicate to the market the terms of the new units offering which will be intended for the existing unitholders of the Fund. Subject to the approval of the unitholders’ meeting, this offering will be commenced in January already.
Until the bonds are not repaid in full, necessary asset enhancements are not implemented - the Fund will not have the capacity to distribute any cash to the unitholders. It is therefore unlikely that any distributions would restart anytime soon.
Leasing performance
During the 9 months of 2025, the Fund handed over approx. 12,500 sq. m. of newly leased out premises. Moreover, leases of approx. 7,150 sq. m. were prolonged. 48 new tenants have been attracted to our buildings, in many cases to replace more problematic ones, while 28 existing tenants have decided to continue their cooperation with us.
As of the end of September 2025, the portfolio occupancy rate based on handover date stood at 85.6%, while occupancy calculated according to lease signing date reached 87.7%. Still, around 10% of leases during the next 3 months are set to expire therefore respective prolongations and relettings are of utmost urgency.
Recent leasing activity is reflected in the increase in the weighted average unexpired lease term until the first break option, which was 3.8 years as of 30 September 2025 (compared to 3.3 years as of 31 December 2024).
GRESB benchmarking
In 2025 the Fund received a 4-star GRESB rating.
Net result and net rental income
In Q1-Q3 2025, the Group recorded a net loss of EUR 959 thousand compared with a net loss of EUR 13,399 thousand for Q1-Q3 2024. Excluding last year’s interim valuation loss, net loss for the prior year period was EUR 870 thousand. The result was mainly driven by the losses on disposal of investment properties. Earnings per unit for Q1-Q3 2025 were negative at EUR 0.01 (Q1-Q3 2024: negative at EUR 0.09).
The Group earned consolidated net rental income of EUR 8.7 million in Q1-Q3 2025 (Q1-Q3 2024: 8.9 million). The results for Q1-Q3 2025 include two months of net rental income of the Meraki office property (EUR 0.2 million), which was sold on 13 March 2025. A slight decline in net rental income year-on-year primarily reflects a higher allowance for bad debts recognised as part of a more conservative debtor risk management approach.
Investment properties
At the end of Q3 2025, the Baltic Horizon Fund portfolio consisted of 11 investment properties in the Baltic capitals. The fair value of the Fund’s portfolio was EUR 228.3 million at the end of September 2025 (31 December 2024: EUR 241.2 million) and incorporated a total net leasable area of 111.5 thousand sq. m. During Q1-Q3 2025 the Group invested approximately EUR 3.4 million in tenant fit-outs.
Gross Asset Value (GAV)
As of 30 September 2025, the Fund’s GAV was EUR 237.7 million (31 December 2024: EUR 256.0 million). The decrease compared to the prior year was mainly related to the disposal of the Meraki office building, which had contributed approx. EUR 16.4 million to the GAV.
Net Asset Value (NAV)
As of 30 September 2025, the Fund’s NAV was EUR 97.2 million (31 December 2024: EUR 98.1 million). The NAV decrease was mainly due to losses on disposal of Meraki. As of 30 September 2025, IFRS NAV per unit amounted to EUR 0.6773 (31 December 2024: EUR 0.6833), while EPRA net tangible assets and EPRA net reinstatement value were EUR 0.7224 per unit (31 December 2024: EUR 0.7267). EPRA net disposal value was EUR 0.6745 per unit (31 December 2024: EUR 0.6797).
Interest-bearing loans and bonds
As of 30 September 2025, interest-bearing loans and bonds (excluding lease liabilities) were EUR 134.5 million (31 December 2024: EUR 149.0 million).
As of 30 September 2025, the Fund’s consolidated cash and cash equivalents amounted to EUR 6.0 million (31 December 2024: EUR 10.1 million).
Cash flow
Cash inflow from core operating activities in Q1-Q3 2025 amounted to EUR 5.8 million (Q1-Q3 2024: cash inflow of EUR 6.6 million). Cash inflow from investing activities was EUR 11.8 million (Q1-Q3 2024: cash outflow of EUR 4.3 million) mainly due to the sale of Meraki in March 2025 for EUR 16 million and higher capital expenditure on investment properties. Cash outflow from financing activities was EUR 21.6 million (Q1-Q3 2024: cash inflow of EUR 1.5 million). In Q1-Q3 2025, the Fund repaid the BH Novus UAB (previously BH Meraki UAB) loan amounting to EUR 10.3 million, redeemed early bonds in the amount of EUR 3 million, prepaid EUR 1.7 million of loans, and paid regular amortisation and interest on bank loans and bonds.
Key earnings figures
| EUR ‘000 | Q1-Q3 2025 | Q1-Q3 2024 | Change (%) |
| Net rental income | 8,709 | 8,869 | (1.8%) |
| Administrative expenses | (1,519) | (1,729) | (12.1%) |
| Other operating income (expenses) | 39 | 15 | 160.0% |
| Losses on disposal of investment properties | (1,350) | (618) | 118.4% |
| Valuation losses on investment properties | (13) | (12,529) | (99.9%) |
| Operating (loss) profit | 5,866 | (5,992) | 197.9% |
| Net financial expenses | (7,061) | (7,724) | (8.6%) |
| (Loss) profit before tax | (1,195) | (13,716) | (91.3%) |
| Income tax | 236 | 317 | (25.6%) |
| Net (loss) profit for the period | (959) | (13,399) | (92.8%) |
| Weighted average number of units outstanding (units) | 143,562,514 | 143,562,514 | - |
| Earnings per unit (EUR) | (0.01) | (0.09) | (88.9%) |
Key financial position figures
| EUR ‘000 | 30.09.2025 | 31.12.2024 | Change (%) |
| Investment properties in use | 228,320 | 241,158 | (5.3%) |
| Gross asset value (GAV) | 237,694 | 256,048 | (7.2%) |
| Interest-bearing loans and bonds | 134,475 | 148,989 | (9.7%) |
| Total liabilities | 140,465 | 157,953 | (11.1%) |
| IFRS Net asset value (IFRS NAV) | 97,229 | 98,095 | (0.9%) |
| EPRA Net Reinstatement Value (EPRA NRV) | 103,714 | 104,333 | (0.6%) |
| Number of units outstanding (units) | 143,562,514 | 143,562,514 | - |
| IFRS Net asset value (IFRS NAV) per unit (EUR) | 0.6773 | 0.6833 | (0.9%) |
| EPRA Net Reinstatement Value (EPRA NRV) per unit (EUR) | 0.7224 | 0.7267 | (0.6%) |
| Loan-to-Value ratio (%) | 60.1% | 61.8% | (1.7%) |
| Average effective interest rate (%) | 6.2% | 6.7% | (0.5%) |
During Q3 2025, the average actual occupancy of the portfolio was 84.9% (Q2 2025: 82.6%). The occupancy rate increased to 85.6% as of 30 September 2025 (30 June 2025: 84.2%).
Overview of the Fund’s investment properties as of 30 September 2025
| Property name | Sector | Fair value1 | NLA | Direct property yield | Net initial yield | Occupancy rate |
| (EUR ‘000) | (sq. m) | 20252 | 20253 | |||
| Vilnius, Lithuania | ||||||
| Europa SC | Retail | 36,521 | 17,530 | 1.7% | 2.0% | 71.8% |
| North Star | Office | 19,688 | 10,706 | 5.7% | 6.2% | 93.2% |
| Total Vilnius | 56,209 | 28,236 | 3.0% | 3.7% | 79.9% | |
| Riga, Latvia | ||||||
| Upmalas Biroji BC | Office | 19,274 | 11,175 | 3.8% | 4.8% | 64.3% |
| Vainodes I | Office | 16,000 | 8,128 | 6.1% | 8.4% | 100.0% |
| LNK Centre | Office | 12,830 | 7,348 | (1.0%) | (1.6%) | 58.4% |
| Sky SC | Retail | 4,913 | 3,260 | 8.4% | 9.0% | 100.0% |
| Galerija Centrs | Retail | 61,119 | 20,016 | 3.5% | 4.6% | 89.0% |
| Total Riga | 114,136 | 49,927 | 3.5% | 4.7% | 81.4% | |
| Tallinn, Estonia | ||||||
| Postimaja & CC Plaza complex | Retail | 21,876 | 9,232 | 3.5% | 5.9% | 100.0% |
| Postimaja & CC Plaza complex | Leisure | 13,196 | 7,877 | 7.2% | 6.5% | 100.0% |
| Lincona | Office | 13,110 | 10,767 | 6.9% | 8.5% | 92.4% |
| Pirita SC | Retail | 9,793 | 5,425 | 6.6% | 8.5% | 94.5% |
| Total Tallinn | 57,975 | 33,301 | 5.3% | 7.1% | 96.6% | |
| Total portfolio | 228,320 | 111,464 | 3.9% | 5.0% | 85.6% |
- Based on the latest valuation as of 31 December 2024, recognised right-of-use assets and subsequent capital expenditure.
- Direct property yield (DPY) is calculated by dividing annualized NOI by the acquisition value and subsequent capital expenditure of the property.
- The net initial yield (NIY) is calculated by dividing annualized NOI by the market value of the property.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| EUR ‘000 | |||
| 01.07.2025 - 30.09.2025 | 01.07.2024 - 30.09.2024 | ||
| Rental income | 3,833 | 3,690 | |
| Service charge income | 1,233 | 1,236 | |
| Cost of rental activities | (2,435) | (2,040) | |
| Net rental income | 2,631 | 2,886 | |
| Administrative expenses | (450) | (615) | |
| Other operating income | 13 | 31 | |
| Losses on disposal of investment properties | (254) | (171) | |
| Valuation losses on investment properties | (4) | (5) | |
| Operating profit (loss) | 1,936 | 2,126 | |
| Financial income | 5 | 8 | |
| Financial expenses | (2,058) | (2,597) | |
| Net financial expenses | (2,053) | (2,589) | |
| Profit (loss) before tax | (117) | (463) | |
| Income tax charge | 49 | (87) | |
| Profit (loss) for the period | (68) | (550) | |
| Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods | |||
| Net gain (loss) on cash flow hedges | 159 | (238) | |
| Income tax relating to net gain (loss) on cash flow hedges | (1) | 17 | |
| Other comprehensive income (expense), net of tax, that is or may be reclassified to profit or loss in subsequent periods | 158 | (221) | |
| Total comprehensive income (expense) for the period, net of tax | 90 | (771) | |
| Basic and diluted earnings per unit (EUR) | (0.00) | (0.00) | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR ‘000 | 30.09.2025 | 31.12.2024 | |
| Non-current assets | |||
| Investment properties | 228,320 | 241,158 | |
| Intangible assets | - | 4 | |
| Property, plant and equipment | 1 | 5 | |
| Derivative financial instruments | - | 1 | |
| Other non-current assets | 941 | 1,225 | |
| Total non-current assets | 229,262 | 242,393 | |
| Current assets | |||
| Trade and other receivables | 2,005 | 2,800 | |
| Prepayments | 407 | 802 | |
| Cash and cash equivalents | 6,020 | 10,053 | |
| Total current assets | 8,432 | 13,655 | |
| Total assets | 237,694 | 256,048 | |
| Equity | |||
| Paid in capital | 151,495 | 151,495 | |
| Cash flow hedge reserve | (327) | (420) | |
| Retained earnings | (53,939) | (52,980) | |
| Total equity | 97,229 | 98,095 | |
| Non-current liabilities | |||
| Interest-bearing loans and borrowings | 110,296 | 98,491 | |
| Deferred tax liabilities | 1,684 | 1,898 | |
| Derivative financial instruments | 273 | - | |
| Other non-current liabilities | 1,179 | 1,446 | |
| Total non-current liabilities | 113,432 | 101,835 | |
| Current liabilities | |||
| Interest-bearing loans and borrowings | 24,408 | 50,736 | |
| Trade and other payables | 2,306 | 4,473 | |
| Income tax payable | - | 14 | |
| Derivative financial instruments | - | 317 | |
| Other current liabilities | 319 | 578 | |
| Total current liabilities | 27,033 | 56,118 | |
| Total liabilities | 140,465 | 157,953 | |
| Total equity and liabilities | 237,694 | 256,048 |
For more information, please contact:
Tarmo Karotam
Baltic Horizon Fund Manager
E-mail:
The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Baltic Horizon Capital AS.
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This announcement contains information that the Management Company is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above distributors, at 17:30 EET on 07 November 2025.
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